CAG finds revenue loss of Rs 1,569.41 crore in Himachal Pradesh

Shimla: Government auditor CAG has found revenue loss of Rs 1,569.41 crore in Himachal Pradesh due to under assessment and short levy during financial year 2011-12. There has also been an increase of 13 per cent in revenue collections in 2011-2012 and the state also received Rs 1,998.37 crore as its share of divisible union taxes, the Comptroller and Auditor General's (CAG's) report tabled in the Vidhan Sabha by Chief Minister Virbhadra Singh said.

The report added that the state also received Rs 6,521.37 crore as grant-in-aid from Government of India. The revenue raised by the state government was 41 per cent of the total receipts, whereas 59 per cent was met by the Centre. CAG said that only 10 per cent of the 559 hydro-power projects allotted to independent power producers (IPP) during the last two decades have been made operational and that too at the cost of environment.

It added that the condition of providing 70 per cent jobs to the people of the state is also not being strictly adhered to. The report mentioned that out of the 559 projects allotted between 1991 and 2011, only 55 with a total capacity of 1,805.45 MW were made operational. "Negligence of environmental concerns was quite visible for the sustenance of aquatic eco-system and the condition of ensuring a minimum 15 per cent discharge of water downstream the projects too was not followed," the report said, adding that the government lacked efficiency in ensuring power development through IPP.

CAG said that only 10 per cent of the 559 hydro-power projects allotted to IPP during the last two decades have been made operational.

The report further pointed out that there was absence of a suitable monitoring mechanism. The CAG recommended setting up of a high powered committee to monitor and ensure proper implementation of the projects and to see that there is no adverse impact on the environment. Referring to functioning of 19 odd state public undertakings, the report mentioned that eight PSUs earned a profit of Rs 17.37 crore, while seven incurred loss of Rs 240.42 crore.

"A review of the last three years indicated that the losses of Rs 2,980.43 crore in the PSU's were controllable with better management, highlighting the need for adopting an accountable and professional approach," the report said. The profit making PSUs included state Civil Supplies Corporation (Rs 6.04 crore), Tourism Development Corporation (Rs 1.58 crore) and State Forest Development Corporation (Rs 7.71 crore), while major loss making undertakings included HP State Electricity Board (HPSEB) with losses rising from Rs 262.67 between 2007-2012 to Rs 1,406.68 crore (provisional). The Himachal Road Transport Corporation has incurred losses to the tune of Rs 80.65 crore.